Chopping Around The Range

JGB futures backed away from their overnight lows during the Tokyo morning, as bears failed to force a move below 152.00, with the move extending in the afternoon. The contract was +1 vs. settlement at the Tokyo bell.

• The early cash curve twist steepening/super-long end swap spread widening reversed on the move higher, with swaps tighter vs. JGBs across most of the curve at the bell.
• There has been little in the way of local news flow to latch on to, outside of some concern from the Secretary General of the ruling LDP Party, who sounded at least a little alarmed re: the domestic COVID-19 situation.
• Elsewhere, the BoJ left the size of its 5-25 Year BoJ Rinban ops unchanged, with the offer to cover ratios in the 5-10 (2.42x vs. prev. 2.66x) & 10-25 Year (3.36x vs. prev. 4.42x) buckets moderating.
• We also saw the usual early stage rhetoric from the Japanese MoF re: the need for JPY stability in the wake of the recent move in USD/JPY.
• Locally, the BoP data, the economy watchers survey and 30-Year JGB supply are all due on Tuesday.